Inventory Appraisals

Inventory Appraisals for Banks and Institutional Debt Providers

LCG provides independent inventory appraisals that help lenders understand what their collateral is worth and what it would bring in a liquidation. Our appraisals support underwriting, borrowing base decisions, and ongoing portfolio monitoring across inventory-intensive businesses. Inventory values move with demand, seasonality, and how quickly product turns. Our professionals look past the balance sheet figure to assess composition, aging, marketability, and the realistic channels for recovery. The result is a defensible net orderly liquidation value (NOLV) your credit team can lend against with confidence. As one of the nation’s leading third-party due diligence firms, LCG pairs its appraisal team with our Commercial ABL collateral examiners. Lenders get a coordinated view of both the value of the inventory and the controls around it.

Our Services Include:

Gross and net orderly liquidation value (GOLV / NOLV)
Inventory composition and categorization
Aging, turnover, and obsolescence analysis
Marketability and salability assessment
Market and liquidation channel analysis
On-site inspection and collateral assessment
Inventory Sell-Through and Demand Analysis

Appraisal Offerings

On-Site Appraisal

LCG provides our most comprehensive appraisal, built for new facilities, refinancings, and existing loans. Our team visits the borrower’s locations to observe the inventory and operations firsthand, reviews inventory records and sales history, and analyzes how each category would perform in an orderly liquidation. The report concludes on gross and net orderly liquidation values and documents the assumptions behind them.

Remote Appraisal

When a site visit is not practical or warranted, LCG performs the appraisal using the borrower’s inventory records, sales history, and supporting documentation. Lenders receive the same orderly liquidation value conclusions and supporting analysis, typically with a faster turnaround and at a lower cost.

Appraisal Update

Designed for existing credits with a recent LCG appraisal, an Appraisal Update focuses on changes since the prior engagement rather than rebuilding the appraisal from the ground up. We review current inventory and financial data, evaluate changes in inventory composition and business operations, and confirm the continued applicability of prior assumptions. Lenders receive updated orderly liquidation value conclusions and a summary of factors affecting collateral.

Common Industries We Serve

LCG appraises inventory across a broad range of businesses, with particular depth in branded consumer products and select industrial sectors, including: